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• • for goods; or goods ready for sale, and reselling such
& Service goods were required to be component parts, materials or goods
Centre imported and stored in the • Service Centre: providing services to a Foreign
Business UAE and resold to outside Connected Person
UAE
• Service Centre: Services
needed to be provided to
Foreign Connected Persons
business outside the UAE
High Risk IP
licensee (2) had to be met for a a. did not create the intellectual property asset
Licensee to be a high risk IP b. acquired the intellectual property asset from either:
licensee - a Connected Person, or
-
development by another person situated in a foreign
c. licenses or has sold the intellectual property asset to
a
income from a Foreign Connected Person in respect of
of the intellectual property asset
: as below, no longer in the
the Licensee does not carry out research and
development, or
as part of its State Core Income-
Exchange of Was considered only if the
Licensee fails to meet the
Economic Substance Test or
considered as a “High Risk IP discussed above under exempted licensee and branches
Business” de-coded.
• - • - AED 20,000
AED 10,000 • Failure to demonstrate substance:
• Failure to demonstrate 1.
substance exchange with foreign competent authority of: (1)
Year 1: Penalty of AED 50k
2.
Penalty of AED 400k; and trade / commercial license
commercial license could could be suspended withdrawn or not renewal
be suspended withdrawn
or not renewal
Mode of nistry of Finance
and
The Institute of Chartered Accountants of India (Dubai) Chapter NPIO TAX JOURNAL 2020 77
